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There are a lot of cashback rewards programs out there, so it is important to compare them and have a full understanding of what they each offer to make sure you find the one that is right for you.
With that in mind, we thought we would break down what the Discover Cash Back Rewards program entails and give you some insight into a few ways that cardmembers can use the Discover cashback program, so you get the most for your rewards. We will also mention some of the Discover credit cards that offer this particular rewards program.
1. Cash or Statement Credit
Redeeming for cash or a statement credit is one of the easiest ways a cardholder can attain value through the Discover cashback program. There is no threshold for how much you have to earn before you cash out. Meaning, if you have only earned $5 as the cardholder, then you can either cash out for $5, or you can wait until you have $100. You can apply the funds to your next statement, or transfer them to a bank account of your choice.
The Discover Cashback Program is a good way to earn back a percentage of the money you have been spending on the credit card. You can redeem cash back in one of several different ways with Discover. You can earn cash back through a bank deposit, a statement credit, gift card, or a charitable donation.
However, keep in mind that even though you may have cashback rewards, this is not an okay for you to spend substantial amounts of money or spend above your means. You want to avoid falling too much into debt because you will also be risking the high-interest rates for the excess charges that are being made. With that being said, it is also important to pay the bills on time every single month and pay as much as you possibly can to continue to avoid higher interest charges.
2. Gift Cards
One of the more interesting ways to use your cashback rewards from Discover is to receive gift cards. These gift cards can be from retail establishments, such as grocery stores, restaurants, and gas stations. But what makes this an interesting option is that you receive $5 added to each gift card for free.
While you might redeem $40 in cashback rewards, you could receive a gift card worth $45. Most of the gift cards come in the form of a physical card, which means you may have to wait up to 10 days before your card arrives. However, you can also elect to receive eCertificates.
An eCertificate can be downloaded to your computer or onto the Discover mobile app and can then be used immediately. Your rewards will never expire, and your account will be credited with the amount of the Cashback Bonus balance if the account is closed, or you have not used the rewards within eighteen months of receiving them.
3. Pay With Points
Discover has a relationship with Amazon that allows consumers to make purchases on Amazon.com and use their cash back to help cover the cost. It’s important to note that there is no value added when using your cashback rewards on Amazon.
One dollar in cashback equals one dollar on Amazon. Because of this, it may make more sense to pay for your Amazon purchase with a credit card, earn the additional rewards, and then apply a statement credit toward the expense.
Discover also announced an agreement with PayPal allowing cardholders to use cashback rewards on any purchase where PayPal is used.
4. Donate to Charity
While you will not earn anything extra, value wise, you have the option to help others and donate your cashback rewards to charity. Partners include the American Cancer Society, World Wildlife Fund, and the American Red Cross.
Donating your cashback rewards to a charity can be a good option if you are looking to donate money to one of these charities anyway, or if you are simply in the giving spirit.
Discover Giving is a partnership with the organization, JustGive, and this organization provides Discover cardmembers access to over one million different charities. Donating via this option also allows you to set up a one time or recurring donation through Discover Giving and you also have the option to decide how the donation is used.
Keep in mind that there may be a minimum donation required, so you will want to be sure you have enough in Cash Back Rewards to make the donation. The average minimum donation amount to expect will be approximately $10 to $25 which also comes out to be between 1000 and 2500 reward points.
Additionally, when you donate through Discover Giving, you are also eligible to receive additional rewards such as automatically earning an additional cashback bonus for every dollar that is being donated.
Earning Discover Cash Back Rewards
There a few cards that let you earn Discover cashback rewards. Let’s take a look at some of them. (Note: Most of the cards listed below require fair credit to qualify. Before you apply, you can check two of your credit scores for free on Credit.com so you can get an idea of if you will be eligible for the card you are considering or not.) It is important that you read through the terms and conditions to fully understand and take advantage of the cashback rewards programs that Discover offers.
Note: At publishing time, the Discover it Cash Back, Discover it, Discover it Chrome and Discover it Student Cash Back are offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for this card. However, this relationship does not result in any preferential editorial treatment. This content is not provided by the card issuer(s). Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved or otherwise endorsed by the issuer(s).
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